Market Commentary
Commercial Market Update - March 30, 2012
March 30, 2012 | Posted by: Francine Tracey
Commercial Bond Yields
Canada Mortgage Bond
Canada Housing 06/15/17*: 1.91%
Canada Housing 03/15/22: 2.60%
* denotes the interpolated rate
Select Government of Canada Bonds
CAN 4.00 06/01/17: 1.58%
CAN 2.75 06/01/22: 2.16%
GOC Bonds are for reference purposes only
First National Floating
Insured Cost of Funds
1.15%
Bank Prime Rate
3.00%
Posted Rate
1 Year: 3.20%
2 Year: 3.55%
3 Year: 3.95%
4 Year: 4.64%
5 Year: 5.44%
Market Commentary
The federal budget didn’t contain any surprises so the markets are taking it in stride.
Canadian GDP expanded slightly in January, but at a slower rate
December 0.5% growth, revised upward from 0.4%.
In the U.S., personal income increased 0.2% in February while personal consumption expenditures climbed 0.8%. Real disposable income dropped 0.1%.
The confidence of American consumers improved in March. The Reuters/U of M Index climbed nearly 1 point to 76.2, from 75.3 in February. While not optimistic, pessimism is fading in the face of the improving job market in the U.S.
And the Chicago Purchasing Managers Index dropped more than expected in March to 62.2%, down from 64% in February. The expectation had been for 63.6%. Production and new orders rose, but the new orders component decelerated to 63.3% in March from 69.2% in February. Employment fell to near 8 percentage points and the prices paid component rose to the highest level since Aug. 2011. Readings over 50% indicate expansion.